Auctions are a level playing field for buyers and give you a chance to gauge the competition. Buying a home at auction is an exciting time – the crowd and competitive atmosphere means it’s easy to get caught up in the passionate bidding, so take a look at these tips to make sure you’re prepared.
TIPS FOR BUYING AT AUCTION
- DO MAKE SURE YOU’RE PREPARED – Ask all the questions about the property before the auction day, inspect the property a few times so you are sure this is the property for you. Talk to the agent about your bidding terms before the day of auction.
- DON’T HIDE AT THE BACK OR BEHIND A TREE – If you’re planning to bid you need to position yourself so you can see what’s going on, but more importantly where the auctioneer can see and hear you clearly. Don’t hide at the back or behind a tree, which may signal fear and weakness.
- DO BE CONFIDENT – When you’re bidding, it is so important to appear confident and in control. Call out your bids loudly and clearly. If you’re nervous about bidding at auction it might be a good idea to invest in a buyer’s agent. They will know how to read the crowd and bid with confidence.
- DON’T GET COMPETITIVE AND BLOW YOUR BUDGET – Don’t let your competitiveness get the better of you. If you’re prepared you will know your limit and you need to stick to it. In the end, it’s better to walk away and accept that it wasn’t meant to be rather than over-committing to a property because you became competitive or emotionally attached.
- DON’T HOLD BACK THROUGHOUT THE BIDDING – It’s powerful to be seen early and often. If you start bidding early you are in far more control than jumping in late. If you’ve been continually bidding and the property goes on the market your nerves will be far better than jumping in at that point.
- DO BE THE HIGHEST BIDDER – Unless the property reaches the vendors reserve, it won’t sell under the hammer. You will know if it hits reserve because the auctioneer will, by law, say that the property is ‘on the market’. If it gets passed in (doesn’t hit reserve), the negotiation process begins and the highest bidder is first in line. You want to be first in line!
There are multiple benefits of an auction for the seller. The most important is, of course, the premium price auctions achieve by creating urgency and competition in a four-week window.
This 4-week campaign allows us to utilise high impact advertising to attract as many buyers as possible to compete at the auction. Once at the auction, there is no price capping on how high the bidding can go and once the property has been knocked down to the successful bidder, it is an immediate exchange with no cooling off period. This allows owners to have the peace of mind that the sale won’t fall through a few days later and they have an unconditional sale.
HOW TO PREPARE YOUR HOUSE FOR SALE
- Get a stylist – Many agents offer this as part of their service for additional fees to provide guidance on furniture placement to show space and create the best possible use of each room. Always use professional stylists that are local and highly recommended.
- Disassociate yourself with your home – Letting go can be difficult. You’ve lived here, possibly for years, and it’s your home. It’s become a part of you, but you have now decided to sell so try and let go.
- Depersonalise the space – Pack up those personal photographs and family heirlooms. You’ll have to do it eventually anyway when you move, and buyers tend to have a hard time seeing past personal effects. You don’t want your potential buyers to be distracted. You want them to be able to imagine their own photos on the walls and it’s harder for them to do if yours are there.
- Rearrange bedroom closets and storage cabinets – Buyers love to snoop and yes, they will open closets and cabinet doors. Maybe they’re curious or maybe they legitimately want to see how much space is inside. Think of the message it sends if items fall out!
- Make the house sparkle! – Cleaning your home should go beyond the usual weekly or day-to-day cleaning jobs, even if you have to hire someone to do it. It could take all day to complete this job so you might want to pay for assistance.
Our Guest Contributor:
Joanne Royston – Director, RT Edgar, Williamstown
Mob: 0402 996 622
With a career spanning more than 25 years, few can match Joanne’s experience, expertise and depth of knowledge in all aspects of real estate sales, auctioneering and property management. Joanne is a true Hobson’s Bay local in every sense, having grown up in Altona, going to school in Newport, and working in nearby Yarraville.
After studying Property at RMIT, Joanne joined her first real estate agency and by the age of 18 and became a director at the age of 27, her natural flair for the real estate negotiation, combined with her friendly, client-focused attitude saw her elevated to the position of agency Director.
It is this winning combination of skill, talent and inside knowledge, plus her desire to be part of something fresh, that saw her join the RT Edgar Williamstown team, with current property owners and new residents turning to her for advice and local guidance. As well as helping clients list their homes for sale and negotiate the best outcomes for all, Joanne’s instinctive sense of discipline and organisation extends to her keen interest in ballet and jazz, as well as playing the piano and trombone.